Origin to cut jobs in Lattice sale

The APLNG Plant on Curtis Island, Queensland.

The APLNG Plant on Curtis Island, Queensland.

Origin Energy plans to cut 650 jobs after it completes the $1.6 billion sale of its non-core oil and gas assets arm, Lattice Energy, to Beach Energy.

According to the Australian, Origin’s only producing assets after it completes the Lattice sale are the CSG fields in Queensland that supply the Australia Pacific LNG (APLNG) Project, in which Origin has 50:50 interest with ConocoPhillips.

“The loss of jobs is never a decision taken lightly and we are putting considerable effort into completing this process as quickly as we can so we can provide certainty to our people,” said Origin CEO Frank Calabria.

The Australian says the majority of the 650 jobs will be Brisbane-based office roles.

Quarterly results

Origin’s production for the first half of FY18 was 172.6 PJ, 12 per cent higher than the prior comparable period (pcp), driven by a 15 per cent increase in production from APLNG with a full six months’ contribution from Train 2.

Sales revenue for the half year to 31 December 2017 increased by $391 million to $1.365 billion, an increase of 40 per cent on the pcp.

This jump was a result of increased LNG sales and higher average prices realised across all products.

December quarter production of 83.5 PJ was 5.6 PJ lower than the previous quarter, reflecting lower customer demand and planned maintenance at the Lattice operations in the Otway Basin, Victoria.

Total production for APLNG for the quarter was 63.4 PJ.

Revenue increased by $8 million compared to the previous quarter to sit at $686 million, with lower volumes from the Otway operations easily offset by increased LNG sales at APLNG.

“Australia Pacific LNG continue to perform well, delivering reliable upstream and downstream production in the December quarter,” said Mr Calabria.

“This is demonstrated by a total of 35 LNG cargoes loaded and shipped from Curtis Island, with the milestone of our 200th cargo successfully loaded on 1 January.”

The sale of Lattice Energy to Beach Energy is due to be completed today.

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